CAPITAL REVIEW

2023 Quarter 3

In Q3 2023, equity markets, represented by the ACWI Index, witnessed a decline of 3.4%. However, they have surged 11.2% YTD as of October 10, 2023. Major indexes like the S&P 500, MSCI EAFE, and MSCI Emerging Markets all experienced a downtrend between 3% to 4% in USD terms. The decline in US stocks was primarily attributed to the rise in longer-term bond yields. This surge was a result of robust economic data and the Federal Reserve's upward revision of its interest rate outlook for 2024. On the international front, equities fell due to the combination of increasing yields and weaker economic data from Europe and China.

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CAPITAL REVIEW

2023 Quarter 2

Global equity markets surged by 6.2% in Q2 2023, led by US stocks due to optimism in tech companies, decreased inflation, and positive economic data. However, international equities had a less impressive performance, while fixed-income markets experienced modest declines and hedge funds saw moderate gains. The forecast predicts declining interest rates over the next seven years, while caution is advised amid concerns over weakening manufacturing data, yield curve inversion, and highly bullish investor sentiment.

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CAPITAL REVIEW

2023 Quarter 1

Q1 2023 saw strong US employment and economic data, which led to a spike in US Treasury yields. The collapse of Silicon Valley Bank and Signature Bank on March 10th altered investor expectations regarding interest rate trajectory and economic growth. The equity market has rallied since the SVB news as investors cheered prospects for a sooner-than-expected end to rate hikes followed by possible pivots to interest rate cuts.

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